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Sustainability

Grievance Update



Group/ParentCompany NameSourceActions and Progress
BLD Plantation BhdBLD Plantation BhdME RRR 4 has reported some ground activities and alleged clearing of over 1000ha of forest/peat between 2017 - 2018

Jun 2018: IOI contacted BLD on the 12 June 2018 and requested they engage with the source of the clearance to seek their cooperation to immediately stop further works pending HCV and HCS assessments. IOI has also requested for actions to meet our policy gaps.

Jul 2018: BLD has responded in a formal letter and confirmed that the source has stopped further land clearance. They have explained the areas cleared are old logging land and now been earmarked for agriculture purposes. According to BLD, their Environmental Impact Assessment is in compliant with the State Government and its agencies requirements.

Aug 2018: BLD is now in the process of appointing a consultant to conduct HCV assessment and is reviewing various qualified parties to perform other assessments and gap analysis towards meeting NDPE requirements; and will update IOI upon finalization of the appointment and the commencement date of the assessments. Next follow-up on September 2018.

Sep 2018: During our recent meeting with BLD in September 2018, there were visible improvements sighted towards transformation to deliver sustainable palm oil. However, according to BLD, there is a delay in the assessment and progress due to time and availability of the consultants. Because of this, BLD has failed to adhere to the datelines and unable to meet IOI’s policy requirement, which states clearly that IOI will not source from any supplier that does not abide by the NDPE policy. IOI have therefore imposed a moratorium on new contracts.

IOI will continue to closely monitor BLD current and future sustainability progress as they have put in place plans to manage their conservation areas; systems to enhance welfare and benefits for their workers and local communities; and to develop a traceable supply chain. We will continue to engage and encourage BLD to meet our policy commitments and for the adoption of a NDPE policy to support their transformation journey.

Jan 2019: Two field visits in December 2018 completed. The management provided us with full cooperation during the visits; and assessments on environmental, social, safety and legal aspect were reviewed for compliance. BLD have commenced reviewing and enhancement of existing action plans to address gaps and weaknesses and have agreed to take steps and measures towards improvement with immediate effect.

BLD have also prepared a sustainability policy and is currently in the process of sharing and socializing it to stakeholders for their review and feedback.

IOI continue to work closely with BLD and our next engagement is scheduled for February and we hope to provide further support to drive change and progress.

Mar 19: BLD management team have briefed their workers on travel documents storage. And the workers are now holding and keeping their own passports.

May 2019 : BLD has finalised their NDPE policy and is circulating it with key stakeholders for comments.

Key updates on action plan progress - BLD have completed safety and sustainability briefing to their stakeholders which include their workers and FFB suppliers. They have also reviewed and strengthened their water management plan for peat areas and added additional piezometers and subsidence pole.

May 2019: BLD has been working with Earthworm Foundation (EF) and has published their Sustainable Palm Oil Policy with NDPE commitments.

EF is the advisory consultant and is supporting BLD in the crafting of a road map for the delivery and implementation of this policy and a grievance mechanism/procedure to address issues from both internal and external stakeholders.

BLD has announced a moratorium on all future new development until the finalisation of their policy implementation plan. And there will be no development of peatlands regardless of depth and HCS and HCV assessment will be conducted for all future developments.

Jul 2019: BLD, with the assistance of Earthworm Foundation, is making satisfactory transformation progress. In accordance to their commitments, they have prepared their NDPE policy implementation plan which includes a grievance mechanism and publishing of supplier mill list. The policy implementation plan details set time bound objectives and milestones. We are placing BLD into monitoring and will continue to engage and provide support.

Aug 2020: Due to the Movement Control order by the government to curb the spread of covid19, we have not been able to conduct site engagements nor received progress updates. As such, we have stopped new contracts from BLD.

FGV Holdings Bhd

Temila Agro Abadi (PT TAA), a subsidiary of Felda Global Ventures (FGV)

FGV is a direct supplier in Malaysia, however PT TAA is not in our supply base.

ME RRR 9: alleged burning of 84 Ha of Peat

Nov 2018

The report alleged that 84 hectares of peat was burnt.

FGV has responded that the burning was the work of the local community within the plasma areas.

FGV, together with the local authorities, has also taken steps towards fire prevention by conducting awareness campaigns on open burning.

FGV will continue to monitor the situation and will increase stakeholder engagements to educate the local communities on ‘no open burning’ and fire prevention.

FGV Holdings BhdFGV Holdings Bhd 

NGO Coalition petition – Forced Labour and Human Trafficking on Felda/FGV plantation

https://laborrights.org/sites/ default/files/publications/ FGV_Tariff_Act.pdf

https://www.theedgemarkets.com/article/us-block-imports-malaysias-fgv

Feb 2019

IOI together with Earthworm Foundation and supported by Impactt Consultancy conducted an intensive focus session on human rights and labour wellbeing with FGV's mill in Sabah. The programmes were spread over 3 days covering issues on forced labour and ethical recruitment; and the participants were the staff and management from the mill and all internal estates as well as external FFB suppliers consisting of smallholders and small producers. Details are available here.


Nov 2019

Fair Labor Association (FLA) announced on the 20th Nov 2019 of their affiliation with FGB to develop a comprehensive social compliance and remediation programme in accordance to FLA's code of conduct which is based on ILO standards and internationally accepted good labour practices. The progress update dated 30 Sept 2020 from FLA is available here. 


IOI has continuously engaged with FGV at regular intervals throughout 2019 and 2020 and FGV has updated stakeholders that they have made corrections for most of the issues raised by the NGO coalition. The issue covering legalization of foreign workers in Sabah will require consultation with the government which is targeted to be completed by end 2019. FGV is planning now for independent audits of their entire labour recruitment SOPs which is targeted to commence within Q3 2019.

Please refer to FGV official statements and updates per link below:

http://www.fgvholdings.com/fgvs-response-to-the-petition-by-a-coalition-of-ngos-submitted-to-the-united-states-customs-and-border-protection/

https://www.fgvhldings.com/wp-content/uploads/2020/03/Background-and-Summary-of-FGV-Action-Plan-2020.pdf

https://www.fgvholdings.com/wp-content/uploads/2020/09/260920-Media-Statement-Statement-on-FGVs-commitment-to-human-rights.pdf


Oct 2020

IOI had immediately contacted FGV upon the announcement made by the US government on the 30 Sept 2020 imposing a ban on FGV palm oil. FGV has given us assurance of their commitments to uphold and safeguard human rights and shared further progress on this matter. Please find here information on FGV's commitments and updates.


Here is FGV latest update dated 14 Oct 2020  https://www.fgvholdings.com/wp-content/uploads/2020/10/Updates-on-the-CBP-WRO.pdf 

FGV has been actively trying to engage the CBP and to find solutions toward revocation of the WRO. The CBP has not provided FGV with any of reports or details concerning this matter to aid the process. Nonetheless FGV continues to work towards the revocation as well as the implementation of their action plan.  


Genting Plantation Bhd

Citra Sawit Cemerlang (PT CSC)

Genting is our direct supplier in Malaysia, But PT CSC is not in our supply base.

Allegations that 125 ha of forest cleared between Jan 2019 and March 2019, source ME RRR 14

April 2019

We have communicated the report to Genting Plantations and explained that such forest clearance is a potential non-compliance with our NDPE policy and seek clarification from the site urgently.

Genting has explained that the HCS assessment has been completed for PT CSC.

We have also requested that further land clearance be stopped immediately if it is in the HCV/HCS areas.

Genting Plantation Bhd

Permata Sawit Mandiri (PT PSM)

Genting is a direct supplier in Malaysia however PT PSM is not in our supply base.

Allegation that 84 ha of deforestation occurred between April - May 2019, source ME RRR 15

May 2019

Genting has confirmed that they have disposed of their interest in PT PSM in 2017 to a business partner and Genting does not has any management control over PT PSM.

Global Enterprise Sdn Bhd

Bulungan Surya Mas Pratama, PT BSMP

Global Enterprise Sdn Bhd is a direct supplier in Malaysia, however PT BSMP is not in our supply base.

ME RRR 21 states 17 ha of deforestation between Jan – Oct 2019 in PT BSMP.

According to the report, PT BSMP is part of Global Enterprise Sdn Bhd.

Global Enterprise Sdn Bhd has checked on the ground and shared corrected information to update the situation.

The land clearing observed is due to illegal encroachment by third party mining for gold. These third parties have also vandalised and destroyed property and palm planted by PT BSMP. Attached are various reports and information from site.
Info/doc 1
Info/doc 2
Info/doc 3

IJM Bhd

Prima Bahagia Permai (PT PBP)

IJM is a direct supplier in Malaysia. However PT PBP is not in our supply base.

Monitoring consultants reported land clearing in Nov – Dec 2017: alleged deforestation in PT PBP

Feb 2018: Our monitoring consultant observed active clearing during Nov and Dec 2017. We contacted IJM and requested an immediate stop of the clearing activities as well as an action plan to deal with these allegations and other policy gaps.

IJM confirmed their commitments to “no deforestation” and “no peat planting”. IJM advised that the HCV study on PT PBP was completed in 2014 and will engage with independent experts to conduct the HCS assessment in PT PBP. We will maintain dialogue with IJM on this matter.

Jun 2018: IJM has shared their 12-month time bound action plan for the assessment and preparation of the HCSA report. IOI will meet with IJM periodically to obtain updates on the progress and look forward to the final recommendations and action plans.

Sep 2018: IJM has stated that in addition to their earlier agreed action to perform the HCS assessment, they will also conduct FPIC on the reported land. They have made commitments to set aside undeveloped areas as a corrective measure should there be findings of deforestation.

Nov 2018: The field visits for HCV-HCS assessment have been completed and the assessors are preparing their report.

KLK Bhd

Menteng Jaya Sawit Perdana (PT MJSP)

PT MJSP is not in our supply base.

It is under KLK Bhd group, one of our direct suppliers in Malaysia

ME RRR 18 reported 12ha of Peat development

KLK has explained that the alleged area is located within PT MJSP’s permit area (Izin lokasi). However, in 2016, the area has been gazetted by Kementerian Lingkungan Hidup & Kehutanan [“KLHH”] as Community Forest Plantation [Hutan Tanaman Rakyat (“HTR”)] area and it is no longer within the management control of PT MJSP. 

KLK has shared Ministerial Decree Letter – Surat Keputusan Menteri from KLHH and also the HTR Maps. Some old planting of palm in the areas by PT MJSP during 2009-2011 will be surrendered to the Gapoktan.

KLK will provide updates and information progressively.

LKPP Corporation Sdn Bhd

PKPP Plantation Sdn Bhd

ME RRR 30 allege 101 ha of forest clearance between Feb 2019 to May 2020

Aug 2020: IOI contacted LKPP for clarification about PKPP.

LKKP has verified and replied that PKPP is a company under the same Parent group - PKNP but there are no commercial connections.

LKPP do Not source FFB from PKPP.

NPC Resources Bhd

Sumber Alam Selaras (PT SAS)

NPC is a direct supplier in Malaysia.

However, we do not buy from PT SAS in Indonesia

Monitoring consultants reported land clearing between Nov 2017 to Jan 2018: alleged deforestation in PT SAS

Dec 2017: Our consultant observed active clearing between November and December 2017. The IOI commercial team has contacted NPC and requested for an immediate stop on any land clearing activities as well as an action plan to deal with allegations and other policy gaps.

NPC informed that they have engaged an Indonesian environmental consultant who will commence immediately to look into the issues in their concession PT SAS.

NPC stated to have stopped further land clearing activities, however there are other works ongoing like road maintenance, etc. We have cautioned them of high likelihood of video or image capture by drones or satellite of site activities and we will continue to monitor NPC’s activities in the months to come.

Jun 2018: NPC has informed IOI that their consultants have completed the field visits and site assessments and are presently drafting the report.

Meanwhile, NPC has agreed to start some preparation to safeguard and protect the conservation areas identified. IOI will meet with NPC when the reports are finalized to discuss their action and monitoring plans to ensure compliance with our NDPE commitments.

Sep 2018: NPC has made commitments to protect HCV/HCS areas and their consultant has prepared an Integrated Conservation Land Use Plan to meet NDPE requirements; Furthermore HCV/HCS assessments will be performed prior to any future new plantings.

The HCV assessment is now undergoing peer review.

NPC has put in place best management practices for peat areas and various SOPs for the management and monitoring of conservation areas as well as for any human-wildlife conflict.

NPC’s public statement on their commitments is shared in their website. https://www.npc.com.my/PublicStatement13Sep2018.pdf

Jan 2019: NPC has informed us that the peer review of the HCV report has been performed and the feedbacks from the reviewers are being currently being addressed.

NPC also advised that the Integrated Conservation Land Use Plan (ICLUP) is completed and is being reviewed along with the Water Management plan.

NPC has agreed to provide further documentation and reports of their completed actions progressively for our review and to ensure improvements are being implemented.

We will continue to engage with NPC to provide support on their sustainability commitments.

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